Panama City is gleaming. The sun sparkles off mirrored windows of brand new high-rise condos, reflecting the azure blue waters of the Bay of Panama. It is shining, too, on the country’s people, including its rapidly growing middle class. The women wear designer clothes, the men play golf, and everyone has a cell phone, a new car, a big-screen TV… They live much like people do (or used to) in the U.S. and Canada.

This isn’t rampant materialism of the kind we see at home. For the most part, Panamanians are frugal. For years, they had to watch their pennies. And they still do. They aren’t stretched to the limit (and over limit) on credit cards and mortgages. They’re simply becoming more affluent as their country grows ever more economically strong.

This is a vitally important point for anyone considering a move overseas: Panama’s financial future is secure, and that gives it the stability other countries lack.

There is no debate that the $5 billion + Panama Canal expansion project is bringing big money into the country. It’s one of the most important public works projects in the world. Engineers, environmental scientists, high-tech equipment operators, maintenance technicians…they are all bringing their families (and their reliable salaries) to Panama. Schools are being built and stores, restaurants, entertainment centers and more are being opened to service them.

Major companies, too, are moving their regional headquarters to Panama. Makes sense, Panama is the buckle on the belt between North and South America, the logical hemispherical hub, equidistant to both continents.

To facilitate Panama’s growth, a new city is being built on the grounds of the former U.S.-operated Howard Air Base just outside Panama City. This is a major undertaking—a $700 million project being built by London and Regional, one of the world’s most prestigious development companies.

For all these reasons and more, Panama is prospering, despite a downturn in the residential real estate market. And it’s why most Panamanians are living so well these days. Money is flowing into the country from sustainable sources, and their jobs and businesses are secure.

As I mentioned, Panamanians know how to stretch a dollar (which in this case is a great attribute since the U.S. dollar is the official currency). In Panama you can get a haircut, take a taxi, or enjoy a complete (and healthy) meal for $3, or go to a movie for $4. You can rent an apartment in the city or a house near the beach for $500 a month. A full-time live-in maid, nanny, or elder-assistant (should you want one) will cost you less than $300 a month. Health care costs are ridiculously low, too…at least when compared with the U.S. ($6-$20 for a doctor’s visit, $10 for blood tests, etc.)

And those designer clothes and big-screen TVs I mentioned? The world’s second-largest free trade zone (and largest in the Americas) is in Panama. Panama is a shopping Mecca…prices are vastly discounted on al kinds of goods… electronics to pharmaceutical products, liquor, cigarettes, furniture, clothing, shoes, jewelry, toys, etc.
As you are thinking about an overseas relocation destination, keep this in mind: Panama is an easy place to move to. It’s safe, stable (both financially and politically), and inexpensive. It’s very progressive in terms of its educational, cultural, health care, and general lifestyle offerings. And it offers—to both its citizens and foreigners—one of the most generous retirement programs in the world.

Suzan Haskins
For International Living

P.S. Because of Panama’s financial stability and the relative wealth of its people, you won’t find rampant poverty (or panhandlers) in Panama as you do in other Latin American countries. And popular new President Ricardo Martinelli, a Conservative, is on track to continue Panama’s path to progress. He has promised to start the biggest job-creation push ever in the country and has vowed to make Panama the best place to do business in Latin America.